Why General Motors (GM) Shares Are Surging Today - General Motors (NYSE:GM)

General Motors Company GM shares are gaining Tuesday premarket following its solid first quarter results, which exceeded expectations.
GM reported first-quarter FY23 sales growth of 11.1% year-on-year to $39.98 billion, beating the consensus of $38.95 billion.
General Motors' Q1 global market share declined 40 basis points Y/Y to 8.6%, with North America climbing 110 basis points to 15.8% and China decreasing 170 basis points to 9%.
Q1 deliveries registered a 3% decline Y/Y to 1.38 million units, with North America climbing 17.6% to 707,000 units and China plunging 24.6% to 462,000 units.
Costs and expenses for the quarter rose 10.6% Y/Y to $37.4 billion.
Operating income for the quarter rose 18.2% Y/Y to $2.6 billion, with an operating margin of 6.5%.
Net income margin contracted 220 basis points Y/Y to 6%.
Adjusted EBIT for the quarter totaled $3.8 billion with an adjusted EBIT margin of 9.5%.
The cash provided by operating activities totaled $3.1 billion. The automotive operating cash flow for the quarter was $2.2 billion, and the adjusted automotive free cash flow totaled $(132) million.
Adjusted EPS of $2.21 beat the analyst consensus of $1.71.
Outlook: General Motors cut its FY23 net income outlook from $8.7 billion - $10.1 billion to $8.4 billion - $9.9 billion.
The company raised its 2023 adjusted EPS outlook from $6.00 - $7.00 to $6.35 - $7.35 versus the consensus of $6.13.
It raised FY23 adjusted EBIT outlook from $10.5 billion - $12.5 billion to $11 billion - $13 billion.
GM Chair and CEO Mary Barra said the company plans to produce 400,000 EVs over the course of 2022, 2023 and the first half of 2024, including 50,000 EVs in North America in the first half of this year, and double that in the second half.
Price Action: GM shares are trading higher by 2.658% at $35.20 in premarket on the last check Tuesday.

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